New OFAC regulations implementing the travel-related and remittances recommendations of the May 2004 Report to the President from the Commission for Assistance to a Free Cuba will be published in tomorrow's (June 15, 2004) Federal Register, with an effective date of June 30, 2004. The new rules will be issued in interim form and comments submitted by interested persons within 60 days of publication will be considered by OFAC in the development of final regulations. The new rules include the following:
1. Fully-hosted travel. The previous authorization for "fully-hosted" travel to Cuba (for which all costs and fees either are paid for by a third-country national who is not subject to US jurisdiction or are covered or waived by Cuba) is eliminated. Moreover, the regulations now include a prohibition on the receipt of goods or services in Cuba when they are provided free-of-charge or received as a gift, unless otherwise authorized by an OFAC general or specific license. OFAC now considers this a prohibited dealing in property in which Cuba has an interest.
2. Importation of Cuban merchnadise. The general license that authorized licensed Cuba travelers to purchase in Cuba and return to the United States with up to $100 worth of Cuban merchandise for personal consumption is eliminated. Thus, no merchandise, other than informational materials, may be purchased or otherwise acquired in Cuba and then brought back to the United States.
3. Accompanied baggage. The amount of baggage carried by an authorized traveler to Cuba is now limited to 44 pounds per traveler, unless a higher amount is authorized by OFAC or BIS.
4. Family visits. Under prior regulations, a general license authorized a person to visit a close relative (defined to include second cousins) once every 12 months (and more often under a specific license). There was no stated limit to the duration of the first visit and travelers could spend up to the State Department per diem (currently $167) for living expenses in Cuba, plus any additional funds needed for transactions directly related to visiting the relative. The new rule eliminates the general license and requires a specific license issued by OFAC that will only authorize travel-related transactions incident to visits to members of the traveler's "immediate family" once per three-year period, measured from the last departure from Cuba, for no more than 14 days. No additional visits will be authorized by specific licenses, according to OFAC, apparently even for exigent circumstances. Travelers may obtain an OFAC license to visit an immediate family member who is not a Cuban national (such as a student in Cuba under a university educational activity license) in exigent circumstances, provided that the exigency has been reported to the US Interests Section in Havana and the issuance of the license would "support the mission of the US Interests Section." The amendments reduce the amount of money travelers who are visiting immediate family members can spend for living expenses to $50 per day, plus up to an additional $50 per trip to pay for transportation-related expenses.
5. Educational activities. Specific licenses are limited to undergraduate and graduate insitutions (ie, no secondary schools) and the duration of such licenses is shortened from two years to one year. Only students enrolled in the licensed institution may travel on that license; therefore, students may no longer travel to Cuba under the license of an educational institution other than their own, even if their own institution accepts the licensed institution's program for credit toward the student's degree. Employees who travel under the license must be full-time permanent employees of the licensed institution. Cetain educational activites in Cuba may be no shorter than 10 weeks; others may be for a a period of less than ten weeks. Previously licensed travel that no longer meets the new requirements may still go forward as long as the trips and all associated transactions are completed by August 15, 2004.
6 Sporting events, clinics and workshops. The general license for amateur and semi-professional athletic competitions sponsored by an international sports federation is eliminated and OFAC will only authorize such activities under a specific license on a case-by-case basis. The policy of specificly licensing participation in workshops and clinics, whether sports-related or otherwise, is also eliminated.
7. Family remittances. The general license authorizing quarterly $300 remittances sent by any US person 18 years of age or older to any household or national of Cuba is eliminated. The new general license authorizes such remittances only when they are sent to the remitter's immediate family. They cannot be remitted to certain Cuban government officials and members of the Cuban Communist party. The total amount of family remittances that an authorized traveler may carry to Cuba is reduced from $3,000 to $300.
8. Remittance-related transactions. The general license authorizing depository institutions to act as forwarders for family and emigration remittances is eliminated. A specific authorization as a remittance forwarder is now required. Depository institutions are still authorized under general license to provide services related to other authorized financial institutions, such as transferring funds to Cuba covered by a specific license allowing overflight payments.
